KUALA LUMPUR, March 31, 2015:
The 6% Goods and Services Tax (GST) will apply only for domestic fares for all Malaysia Airline (MAS) flights from tomorrow, as international flights and linkages aren’t affected.
In a FAQ document set out at its website, MAS said domestic flights linked to international route bookings will also be exempted from GST.
As an example, if a passenger books flights from Kota Kinabalu to Kuala Lumpur, then on to Bangkok, the entire journey is GST-free – including the domestic fares. The multi-stop flights from Bangkok to KK are also GST-free.
But if the booking is solely from KK to KL or anywhere within the domestic flight network operated by MAS, the fares will attract the 6% GST.
MAS also clarified that the domestic portions of an international flight routing must be completed within a 24-hour period of arrival in Malaysia and with the same carrier to be GST-free.
If a passengers arrives on KLM at KLIA and then boards a MAS flight to Kuching, the flight is GST-free only if all the tickets are issued by MAS – given that KLM is a code-share partner.
If the passenger bought the connecting flight tickets separately from KLM and MAS, the domestic flight will attract GST.
Further, the passenger service charge (PSC) or airport tax is subject to GST. Ancillary charges like excess baggage fee, seat selection, food orders, etc are also subject to GST.
Full details can be found at the GST page at the MAS website.
These GST rules for airfares are prescribed by the Customs Department and also apply to other domestic carriers AirAsia, Firely, Malindo Air and MASwings.